Should Smokers Pay Health Taxes or No - 1314 Words

Essay 3: Should smokers pay health taxes or no? Minh Anh Nguyen City University of Seattle Smoking is something that happens every day in our life. People can easily find someone smoking in some street corners, even in public places like train station, hospital, dormitory. It is not strange if you cross the road and see a mom who is enjoying her cigarette in front of her child. It is a kind of action that has become a part of our society and it accidentally makes people think that smoking is normal and it is just a habit and people do not feel like they have to stop it. Even some people are aware of the negative impacts of smoking they still ignore it and let it happen. People used to have the same†¦show more content†¦So why nonsmokers and smokers pay the same taxes while smokers can enjoy their cigarettes but nonsmokers have to suffer many diseases as a second hand smokers? At this point is it even fair to treat nonsmokers like that? By making smokers pay for health taxes and even raise the taxes if they keep smoking, people are supporting the nonsmokers in huma n community. Why does it make sense? It would make smokers be responsible and pay for the inconvenience they have caused, for people who are living and working with them that they harm with their smoking. The consequences of smoking are not something new to people. Some of you still think that it is not that much dangerous as people are smoking everywhere and every day? Smoking causes 1 in every 5 deaths in the US every year, which was revealed by Centers for disease control and prevention (n.d). If it is not shock enough, here is the research that has been revealed by BBC NEWS (1999), which is every cigarette you smoke reduces your expected life span by 11 minutes. Smoking also makes the risk of a heart attack 200% to 400% greater than that of nonsmokers (Kurzweil Grossman, n.d). In developing countries, patients are asking more from health services. â€Å"The problem has been increasing, as the number of uninsured Americans continues to rise. In 2004, 15.7% of the population, o r 45.8 million people, in theShow MoreRelated Smokers Need Higher Health Care Premiums Essay668 Words   |  3 Pagesthe body have been proven scientifically and today is common knowledge. According to Health Canada, there is a large amount of strong medical evidence that smoking is related to more than 24 different diseases and other body conditions. Including emphysema, lung cancer and chronic bronchitis. Smoking has negative effects on every part of our anatomy and generally deteriorates the health of one?s body. Every smoker is well aware of these negative consequences, yet many continue to smoke nonethelessRead MoreThe Effects Of Secondhand Smoke On Public Places1548 Words   |  7 Pagesthe surgeon general released a report which focused on the consequences of secondhand smoke the report claimed that secondhand smoke was the cause of lung cancer in healthy nonsmokers. That same year the national research council issued a report on health consequences of involuntary smoking, as a result the American’s for nonsmokers rights became a national group. By January of 2014, 28 states had enacted statewide bans on smoking in all public places, with a few exceptions such as bars or other suchRead MoreCigarette Tax Essay1293 Words   |  6 PagesIncreasing cigarette taxes is a win-win situation for everyone if you ask me, however I am not a smoker. I suppose if I were I may think differently. It is a health win that reduces smoking and saves lives; a financial win that raises revenue and re duces health care costs; and a political win that is popular with the public. On February 4, 2009, Congress enacted, and President Obama signed into law, a 62 cent increase in the federal cigarette tax, along with increases in other tobacco taxes, to fund expansionRead MoreShould Cigarette Smoking Be Banned?899 Words   |  4 Pages Should Cigarette Smoking Be Banned Whether or not cigarette smoking should be banned completely, has become an object of controversy in many countries. Should cigarette smoking be banned for everyone in the United States? Smoking tobacco products have been around for decades and in many different forms. According to the Centers of Disease Control and Prevention (CDC), cigarette smoking is the leading preventable cause of death in the United States. Cigarette smoking causes more than 480,000 deathsRead MoreThe Government And Health Care1543 Words   |  7 Pagesexplosion in health care prices today. In an article titled â€Å"Spending in Health Care† James L. Madara of the American Medical Association publicized that at minimum 25 cents of each health care dollar is used for the curing of illnesses or disabilities that result from changeable activities. Whether it is smoking, alcohol misuse, poor nourishment, too little exercise, failure to use seat belts, or overexposure to the sun, avoidable health care charg es are the concern of numerous U.S. health care criticsRead MoreTax And Its Effect On Society Essay1350 Words   |  6 Pagesestimated to be  £1.5 billion) therefore, the social cost is greater than the private cost; if the social cost is greater than the prsent price, social efficiency can be increased by making smokers pay the true social cost. Although the cigarette is getting more expensive, there is still a huge number of smokers who are buying the cigarette, therefore, we can consider that cigarette have an inelastic demand. Price($) P1 Read MoreEnvironmental Tobacco Smoke Essay1084 Words   |  5 Pageslives, the prevention of disability, to a dramatic decline in health care costs – majority of which are carried by nonsmokers who otherwise are impelled to pay exaggerated health insurance premiums and higher taxes. The recently laid ban on smoking in outdoor areas, in the city, is a smart move. Support of smokers is truly much needed to make it successful. Smoking is extremely harmful to health of nonsmokers and to the nature; smokers should be self-disciplined and socially responsible and avoid smokingRead MoreCigarette Smoking Should Not Be Banned1528 Words   |  7 PagesShould cigarette smoking be banned for everyone in the United States? Why? Why not? Should those who chose their time smoking to relieve stress, personal enjoyment, or simply just because, have to lose their right to what makes them happy? Smoking tobacco products has been around for decades and in many different forms. Should pers onal rights be pushed aside to please those around us that disagree with the so called â€Å"disgusting habit†? In the paper The Washington Times an article caught my interestRead MoreEthics Of The Tobacco Industry Essays1022 Words   |  5 Pagesresponsibility the best way that it should. There are many factors that make the industry unethical; some of the reasons are the way the cigarette companies around the world Advertise, the way governments and cigarette companies make a huge profit from the sales of cigarettes, and the labeling health risks. I do believe however that there is something that the tobacco companies can do to better their strategy as far as their ethics go. I think that they should, always be looking for the best interestRead MoreEffects Of Smoking Ban On Children1747 Words   |  7 Pagesspearhead growth of the economy is being directed to treat these diseases. Majority of the affected population are young children. However, research has indicated tha t the largest number of these children emanates from family where none of the parent is a smoker. This is an indication that they inhale the cigarette smoke while on the streets and other public places such as restaurants (Sandford 2003). The government has a mandate of protecting its people. Young generation holds the future of these countries

Strategic and Operational Risks

Question: Discuss about the Strategic and Operational Risks. Answer: Introduction: In the current business domain, every business concentrates to gain higher competitive advantages from its initial stage, which in certain circumstances, lead them towards unfavorable or unexpected situations. This in turn might cause to excessive cash outflow, fraud, crime, vandalism, inefficiency in management among others. Apart from this, this kind of situations might also take place due to inefficient decision making process regarding marketing and production (Director Publications Ltd., 2012; ACCA, 2008). HIH Insurance Limited has currently experienced certain issues in maintaining the business effectively. The company is an outcome of merger between CE Health International and Winterthur Insurance Company. There are certain risks factors evident in the HIH Insurance Limited that majorly caused financial downturn. This can be illustrated on the basis of the insured areas such as marine, workers compensation insurance, natural disasters, film finance insurance, and aviation insurance that the company offered insurance facilities to its clients, which considered to be the areas of high risk. Recently, the company faced a huge loss of around $100 million from film financing. In addition to this, the company also acquired FAI insurance and as a result, it had to remit the insurance claims of the FAI clients, affected by the devastating hailstorm in Sydney. The typhoon in Florida in 1999 also made HIH to provide a huge amount of insurance coverage to the clients that caused loss in a large scale. Apart from this, the deregulation of the industry in California made an increased in the processing of insurance claims of HIH pertaining to workers compensation (Gay Simnett, 2015). The CEO of HIH insurance has intimated about the current financial position, wherein it is observed that the company had to sale its assets to meet the obligations of the insurance claims and had to pay a large compensation to the auditors and other consulting agencies. Another business risk that was associated with HIH can be regarded as the discontinuation of the practice of prudential margins and resorted to reinsurance process. As a result the company was unable to repay the money of the insurers in the process of claim settlements (ICT, 2007). Inherent Risk Inherent risks mostly cause due to misstatements or misinterpretations of certain facts in the financial reports. This kind of occurrences often evident while auditing due to the absence of internal control mechanisms for risk detection (ACCA, 2009; Delaney Whittington, 2009). The Australian Securities and Investments Commissions (ASIC) sentenced the CEO Mr. Jeffrey Lucy to jail for making alterations in the three financial transactions which amounted more than hundreds of millions. This offence was not favorable for the shareholder, as they were unable to gain knowledge about the actual financial position of HIH. In this regard, Mr. Williams, the auditor of HIH, also helped to omit the information on behalf of HIH in 1998 in which the operating profit before tax was stated as $92.4 million (Gay Simnett, 2015; ICT, 2007). Based on the stated facts, it is apparent that the company might face issues in generating money, which will affect the financial abilities of HIH. Apart from this, the company might also unable to maintain its goodwill in the market due to these kinds of unethical activities.Thus, it is observed that the level of inherent risks in HIH is comparatively high that can create dissatisfaction among the stakeholders and reduced the ability of the company to repay the claims to the clients at the international level. Legal Liability Relevant Court Cases Several court cases can be illustrated regarding the unethical activities evident in the company, which are also continuously neglecting the creditors and the clients. for instance, the case of Enron Scandal can be highlighted in this regard, wherein the investors lose their money and employees got terminated, as the CEO hidden the information of debts on the balance sheet. This occurrence led the company towards distraction and huge reduction in the stock prices of the company (The Accounting Degree Review, 2016). Similar situation has been evident in HIH in which the company included false information to attract customers in purchasing HIH shares. In this regard, it can therefore be affirmed that HIH failed to maintain a transparent relation with its clients, which Andersen can refer. Apart from this, the case of waste management company, Houston that was found to misrepresent its earnings can also be illustrated along with the misrepresentation of HIH, which clearly depicts a negative relation between the creditors and clients (The Accounting Degree Review, 2016; US Securities and Exchange Commission, 2002). Conditions for Negligence Action The HIH insurance company was found to breach the ethical codes that led the company to become insolvent. In this regard, the CEO of the company was found guilty for misguiding the stakeholders by providing false data in the financial reports. The misinterpretation of financial data and attracting customers by providing them false information are considered to be ethical violation that have been conducted by HIH based on which the stakeholders can take appropriate measures. In addition to this, nine senior executives of FAI and HIH was also found guilty for continuously repeating such unethical activities within the setting for which the customers or other stakeholders have to face huge loss (Gay Simnett, 2015). In these kinds of cases, the clients can take legal actions against the individual as well as the company for misinterpreting the information or misguiding them. Ethics Hire of Members from External Audit Firms The audit functions of HIH were maintained by Arthur Andersen from the initial stage. The relation between Andersen and HIH can be considered as the reason of hiring prior members for auditing as the company need not to concern about the unethical activities conducted previously as Andersen also supported such actions.. Thus, including prior members those have knowledge regarding the unethical actions and support the same will make the deal success and the company can continue accordingly (Rogers, 2010; Mishekary, Yaftian Cross, 2005). Advantages of Consulting and Audit Services The consulting services provided suggestions or possible actions in the areas of tax, technology, marketing and other strategic dimensions through which a corporate house can enhance its profitability. The responsibilities of auditing team are to evaluate the information provided by the company regarding its business operation based on which the team obtain an in-depth understanding on the company strengths, risks factors and future potential. Thus, the team can easily provide comparatively more effective suggestions or recommendations to the company in increasing its overall performance along with higher profitability and risk assessment. Conversely, in case of including different consulting firm, the team hardly have knowledge on the strategic planning, decision making or strategic priorities of the company due to which the recommendations might not provide expected outcome in long run (Verschoor, 2014; PWC, 2012). Concerning the scenario of HIH, it is stated that Andersen has detailed knowledge on the companys actual position and financial condition based on which he can recommend possible measures to overcome with the financial issues. Apart from this, the auditing team can also advices HIH to manage the operations of business in reducing the amount of taxes, which on the other hand helps in the decision making process, which in turn improve the quality of audit (ACCA, 2010). Ethical Violations From the provided case scenario, it is apparent that HIH consistently violated the ethical standards, which needs to be eliminated from the setting to maintain the business operation standard. HIH has consistently hidden the information regarding financial report or other operation related data, which depicts the actual situation of the company. In the insurance or any other business, the stakeholders must have the knowledge on the business operation, which has also not been followed by HIH. Thus, in this context, it can be stated that HIH has failed to maintain transparency within its work process as well as communication with the stakeholders along with the customers (Verschoor, 2014; Ernst Young, 2013; ACCA, 2010). CLERP and Ramsay Report Nowadays, majority of companies include several unethical activities to gain higher position in the market, which in turn put a barrier for the business domain in maintaining transparency. To mitigate this concern, certain actions can be taken on the basis of the recommendations provided in CLERP 9 and the Ramsay report (Deloitte Touche Tohmatsu, 2005). According to the report the auditors must be independent while performing auditing process and provide the results as per the ethical considerations. In addition, the team members need to be changed in every year as per the accounting standards and focused on the necessity of greater participation by shareholders. The auditors will purely concentrate on continuous need of disclosure and charge high penalties for violation of ethics (Robinson, 2003). Apart from this, as per the recommendations of the Ramsay report, it is suggested that retired auditors or working auditors cannot maintain contacts with the client companies, as indicated in the case with HIH (John Wiley Sons, 2016). Conclusion: Through the changes of the rules in auditing process, the audit firms can maintain transparency amid stakeholders and companies that will prevent to misrepresent the data that in turn affects the interest of the investors. Taking the references from the case scenario, insurance companies such as HIH will also not have to suffer for financial downturn in long run due to the changes in auditing process. References ACCA 2008, Strategic and operational risks, Technical, pp. 34-35 ACCA 2009, Audit risk, Technica, pp. 1-4. ACCA 2010, Consultation on audit firms providing non-audit services to listed companies that they audit, Think Ahead, viewed 24 August 2016, https://www.accaglobal.com/in/en/technical-activities/technical-resources-search/2010/january/audit-firms-providing-non-audit-services.html Daughtery, B Dickins, D 2008, The value of cooling off, Corporate Governance, pp. 30-33 Delaney, P, R Whittington, O, R 2009, Wiley CPA exam review 2010, auditing and attestation, John Wiley Sons, America. Director Publications Ltd. 2012, Business risk a practical guide for board members, A Directors Guide, pp. 1-72. Gay, G Simnett, R 2015, Auditing and assurance eervices in Australia, sixth Edition, McGraw-Hill Education, Australia. ICT 2007, Diploma in compliance insurance appendices, Diploma in Compliance, pp. 1-173. John Wiley Sons 2016, Ramsay Report recommendations into audit independence, Auditing, pp. 1. Judges of the Supreme Court of Canada and Australia 2016, Supreme court judgments, Decisions, viewed 24 August 2016, https://scc-csc.lexum.com/scc-csc/scc-csc/en/item/1511/index.do Morgenson, G 2005, KPMG settles with S.E.C. on Xerox audit, Business, viewed 24 August 2016, https://www.nytimes.com/2005/04/20/business/kpmg-settles-with-sec-on-xerox-audits.html?_r=0 Mishekary, S, Yatfian, A, M Cross, D 2005, Australian corporate collapse: the case of HIH Insurance, Abstract, viewed 25 August 2016, from https://link.springer.com/article/10.1057/palgrave.fsm.4770157 Parlow, D, S 2012, The prospects of a successful claim against auditors in fraud, Uploads, pp. 1-10. PWC 2012, Point of view auditors scope of services, Point of View, pp. 1-3. The Accounting Degree Review 2016, The 10 worst corporate accounting scandals of all time, Scandals, viewed 25 August 2016, https://www.accounting-degree.org/scandals/ US Securities and Exchange Commission 2003, SEC charges KPMG and four KPMG partners with fraud in connection with audits of XEROX; SEC seeks injunction, disgorgement and penalties, News, viewed 24 August 2016, https://www.sec.gov/news/press/2003-16.htm Verschoor, C, C 2014, Do consulting services threaten audit performance, Ethics, pp. 12-69

Isolation of Microorganisms from Environmental Samples Essay Example

Isolation of Microorganisms from Environmental Samples Paper It is crucial in the field of microbiology to study the morphology, biological activity, and the behavior of microbes thus the isolation of such microbes from the environment is necessary because it allows scientists to study them in close proximity. Microbial life forms are found everywhere. They are major players in biochemical cycling of elements and primary producers in numerous environments. There are also some microbes living inside higher forms of organisms that aid in digestion and provide vitamins. Some scribes can also be antagonistic or harmful to humans, and when scientists isolate them, they can study and identify ways on how to counteract the microbes harmful effects. This exercise aims to isolate microorganisms from a variety of environmental samples and to enumerate the different microbial species observed. Methodology Rest Its and Discussion Bacteria, molds and yeast have different colony morphologies and characteristics that are specific to the genus and species of the organism. Bacterial colonies can be classified by color, form, elevation, margin, opacity ND size. Mold and yeast colonies can be classified and described by their color, texture, feature on the reverse side and more. Also, the source from which the bacteria samples were gathered should be taken into consideration. In the experiment, the microorganisms that were isolated were gathered and collected from the environment. As such, only h strength AN was prepared along with the SAD. It was observed on the AN plates that there were multiple bacterial colonies formed that did not differ so much in color or elevation. We will write a custom essay sample on Isolation of Microorganisms from Environmental Samples specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Isolation of Microorganisms from Environmental Samples specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Isolation of Microorganisms from Environmental Samples specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Most colonies were white or a color that is just as light, like yellow or salmon pink. The sizes of the isolated colonies are relatively small, most just less than 1 mm in diameter. The AN plate in which bacterial colonies were numerous was on the ones exposed in air that is outside the laboratory. The fewest were the ones that were swabbed on the skin. There were also colony growths on the AN plates that were not bacterial colonies. It was observed on the SAD plates that most of the molds and yeast that grew were cottony in appearance and had a wrinkled reverse side.

How to Become President of the United States

How to Become President of the United States With the primary election coming to an end, only two candidates (if you’re not counting the independent candidates) will remain. While that seems simple enough, the path to becoming the President of the United States can be rather confusing and difficult to understand. After all, our system involves us voting for who we want as our leader, but we technically vote for representatives who then vote for the person we want as our leader, in which the representatives don’t always abide by the wishes of the voter. Make sense? No? Yeah, it’s pretty  convoluted but to make things easier to digest, we’ve compiled a very short and basic infographic on what it takes to become the President of the United States.

Act and rule utilitarianism Essay Example | Topics and Well Written Essays - 500 words

Act and rule utilitarianism - Essay Example When accounting for happiness, no individual or entity is given precedence over the other. The â€Å"Rule Utilitarianism† theory states that the acts of individuals will be judged as morally right or wrong with reference to the rules that are developed keeping in mind the principle (Rachels). Therefore, the principle is used to select a set of rules which then determine whether an action is right or wrong under a given situation. This theory has been criticized as attaching more significance to â€Å"rules† than they deserve. As opposed to this, â€Å"Act Utilitarianism† states that the principle is directly used to determine whether an action is right or wrong under a given situation without first applying that principle to select a set of rules (Rachels). Hence, this approach is referred to as â€Å"direct† utilitarianism, whereas the former is referred to as â€Å"indirect† utilitarianism. Furthermore, act utilitarianism is also referred to as the classic or original utilitarianism. For instance, in a society whereby killing someone i s prohibited by law, a rule utilitarian would argue that killing is morally incorrect because if the law is followed, everyone shall be free from the fear of being killed. Act utilitarians, on the other hand, would not accept legal considerations. This view would state that the killing is morally correct if it benefits most people in the society. Hence, it would be justified to kill a criminal, for example, as he/she would pose a threat to the society. The act utilitarianism approach propagates a hedonistic view of finding the best alternative course of action. The best action is therefore, one which produces the highest pleasure. However, rule utilitarianism counters this by claiming that actions that produce the highest utility for an individual may not be morally correct. For instance, human rights violation is not justified even if it results in net welfare for the

Origins of vernacular language Essay Example | Topics and Well Written Essays - 500 words

Origins of vernacular language - Essay Example Some of the vernacular language carries an interesting history laced up with all its delicacies and ethical norms. Latin and the vernacular languages Originally Latin was among one of the Italic Languages which later underwent into a continuous development and in each period it showed some significant changes between the literary written language which was influenced by other languages including Celtic Languages, Etruscan and Greek. There was an obvious difference between the linguistics used by an educated class and a uneducated class. It was in c.70 BCE to c.14 CE when Latin was at its peak and was used by poets and writers whose literature is still considered to be a golden heritage. Latin which went into a lot of brushing and grooming by other languages like Greek was then adopted by Western Church in Rome where Christianity was the most dominant religion and Latin fathers helped in compiling Christian Doctrine. African American Vernacular English (AAVE) African American Vernacul ar English is commonly known as a black vernacular as it is spoken and understood in a region where black masses are living in. It is another form of English with difference of grammatical changes in English Language used or understood in America. Controversies are noted with a subject of emergence of AAVE.

The Global Financial Crisis On Gcc Countries Economics Essay

The Global Financial Crisis On Gcc Countries Economics Essay The global financial crises that erupted in 2008 affected all countries, rich and poor, to varying degrees, worldwide (Iqbal 2008). Financial markets around the world became more volatile and the economic slowdown created a ripple effect beginning with the United States and Europe into several more economically integrated countries (Nabibi 2009). In a short span of time, severe economic losses were reported by banks, real estate, and equity markets. Blackstone chief executive officer (CEO) Steve Schwarzman stated in the Davos World Economic Forum that the global economic meltdown destroyed 40 percent of the worlds wealth (Conway 2009). The crisis began in September 2007 and concentrated in US real estate termed as the subprime crisis and eventually developed into what economists called the credit crunch in 2008 (Nabibi 2009). As American and European banks incurred losses because of exposure to sub-prime assets, their capital was reduced and affected their capacity to lend. Moreover, corporate and household borrowers began to deleverage (Al Maraj 2008). As major financial institutions went bankrupt and household wealth eroded, investor and consumer confidence went down significantly (Woertz 2008). Quick policy responses from governments of the West was able to prevent their economies from plummeting into depression, but the U.S. experienced one of its worst recessions since the Second World War (United Nations 2009a). While economists have said that no country was spared as a result of the global financial crisis, the effects were disparate among different economies. For instance, the more severe losses were exper ienced by highly integrated economies and had minimal impact on Arab economies which are less integrated (Behrendt, Haq and Kamel 2009). However, the global economic slowdown also resulted to the decline in demand for oil, which claims a significant chunk in the exports of countries composing the Gulf Cooperation Council or GCC (Nabibi 2009). The initial impact of the crisis was the sudden plunge of oil prices, coupled with the depletion of half of local stock markets by half, and the loss of value of investments in the global market. The decrease in oil prices affected the oil-exporting GCC countries which are also the most globalized in the region (Fakir 2009). The domino effect came later unemployment, decline in remittances, reduced government income, reduced trade and investment and reduced social service allocations (United Nations Development Programme [UNDP] 2010). On the other hand, GCC decision makers and finance ministers have reiterated that strict monetary oversight ha s shielded their economies from the worst effects of the global crisis (Tzannatos 2009). The finance ministers stated that the abundant liquidity is enough to assuage investor concerns and highlight the stability of the monetary system of the GCC (Al Jazeera 2008).   Nevertheless, these effects cannot be generalized for all the GCC countries given their diversity (Nabibi 2009). Countries that are more exposed to global capital, investment and consumption demand face a greater risk of being affected by the crisis than others. For instance, Dubai in the UAE, which depend heavily on international capital, tourism and real estate, seems to be more adversely affected than other countries. On the other hand, Saudi Arabia, which has only 25 per cent foreign workers compared to much higher proportions in the other GCC economies might be much less affected than others (Rajan and Narayana 2009). The crisis seems to have visibly hit the GCC economies in the beginning of 2009. However, both the depth and intensity of crisis and the possibility of turnaround are not clear. This paper examines the impact of the global financial crisis on the six countries who are members of the Gulf Cooperation Council (GCC): Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). 2 Objectives This study seeks to: 1. Assess the impact of the recession on key industries in the GCC economies; 2. Assess the impact of the recession on employment and other social services; 3. Identify the measures undertaken by various stakeholders to mitigate the adverse effects. 3 Topic Area The central topic of this study is the 2008 global financial crisis, which is one of the most significant economic phenomena that caused turmoil in countries all over the world. To some economists, it demonstrated the volatility and instability of increasingly integrated economies under a globalized world. As many have observed, the countries which were greatest hit by the crisis were those which were highly globalized (Nabibi 2009).    The implications of the crisis for the GCC are significant. In the Arab region, GCC countries are the most globalized, so logically, the erosion of corporate wealth in the US and Europe would have an accompanying impact on the GCC economies. Indeed, as the World Bank (2009) and the International Labour Organization (ILO) studies have shown, stock markets in all of the GCC countries experienced a significant decline because of the withdrawal of investment from foreign financial institutions. Moreover, privately-funded and domestic projects have been cancelled or abandoned, resulting to a great number of people being laid off and without jobs (Tzannatos 2009; Rajan and Narayana 2009). Despite pronouncements from government decision makers, the effects of the downturn on GCC economies seemed evident (Woertz 2008). Many organizations such as the World Bank and the ILO conducted impact assessments to determine the effect of the financial crisis on trade and industry in the GCC (Iqbal 2008 ). Understanding how it impacts the GCC economies and determining the effectiveness of the policy responses by governments shed light on how best to strengthen economies to mitigate the effects of the global financial crisis. After all, it seems certain that the global financial crisis of 2008 was not the first to its kind and will not be the last. 4 Literature Review   Studies and statistics assessing the impact of the global financial crisis on Arab countries have mixed results. Some have stated that the impact, while present, has been minimal (Behrendt, Haq, and Kamel 2009; Khamis 2010) while others have hypothesized of a more lingering adverse impact for oil-exporting economies such as those in the GCC (Nabibi 2009; Bloomberg 2010). The initial pathway for the effects of the crisis to become transmitted into the GCC was its financial markets. It began with the regional stock markets characterized by high volatility. Financial institutions as well as real estate developers, which comprise among the largely publicly-listed corporations in the GCC were adversely affected, especially Dubai (Nabibi 2009). Moreover, due to real estate speculations effect of increasing defaults on mortgages, many commercial banks in the Middle East region were hurt. Despite having a limited exposure to the global financial markets, banks in GCC countries maintained large investments and loaned very large sums to private entities for the purpose of investment (Center for Strategic Research 2009). As stock prices plummeted, several banks experienced massive default loans and loss of asset values (Khamis 2010). Although the banking sector experienced shock waves, the Islamic banks on the other hand were insulated (Iqbal 2008). Because the y are protected from toxic financial assets and prohibit speculation, the first impact of the global financial crisis shielded them. In addition, sovereign wealth funds (SWFs) also suffered heavy losses as a result of the global financial crisis. The heavier losses were recorded by those which have significant investments in the US stock market, financial institutions, insurance companies, and banks. Estimates put losses at over 200b USD for the year 2008 alone (United Nations 2009b). Aside from the financial sector, the effects of the global financial crisis have also impacted the real economy (Woertz 2008). In real estate, projects which are ongoing or are in the planning stage are likely to be suspended because of financial squeeze. Financing for large construction projects will not be so feasible. This is why one of the largest-hit of the global financial crisis is Dubai where the real estate sector is heavily dependent on speculation and debt financing (Rajan and Narayana 2010). Revenue generation among countries has also generally decreased. Figures from the ILO in 2009 reveal that real GDP growth has shrunk from 6 percent in 2007 to 4 percent in 2009. There is great indication that the crisis will have a more sustainable effect on the region within the years to come. Moreover, due to high inflation, increasing national debt, and prolonged volatility of markets will render more GCC countries vulnerable to the economic slowdown (Center for Strategic Research 2009). Analysts have been keen to point out that the significant drop of oil prices and demand for oil will be the biggest obstacle for the GCC economies. From a barrel price of 140USD in July 2008, oil prices have dropped to merely 40USD per barrel in January 2009. This significant drop increases the threat of negative fiscal balances for Oman, Bahrain and Saudi Arabia due to losses in oil revenue. Hence, the projected growth among GCC countries may be set back a few years more because of downward trend of oil prices (Behrendt, Haq, and Kamel 2009). The slowdown of the European economy may also force GCC countries to reduce production, which will eventually lead to further decline of real GDP in oil-exporting countries (Bloomberg 2010). Saudi Arabia was also severely hit, with its GDP down from 4.2 percent in 2008 to 0.7 percent in 2009 (United Nations 2010a, p. 74).Moreover, without sound governance, the current practice of oil-exporting countries of maintaining high fiscal spending despi te declining oil revenues will further hamper growth (Nabibi 2009). Analysis and predictions over the impact of the global financial crisis on the GCC economies are mixed. While they unanimously state that the global crisis has had an adverse effect on GCC countries, some have stated that the impact is negligible (Khamis 2010) and is not adverse enough to threaten the stability of the region. Behrendt, Haq, and Kamel (2009) opined that the GCC economies are in a relatively well position and can ably cope with the challenges of the global economic turmoil because of many reasons. Firstly, the GCC region has abundant liquidity from incomes out of high commodity prices. Secondly, sound economic management has enabled GCC economies to weather the economic slowdown quite well. Thirdly, the economies of GCC countries are weakly integrated to the global economy as compared to other regions. Smith (2008) said that while there have been negative effects experienced by GCC economies, they are manageable compared to what has been suffered by other countries. The effects of the global financial crisis have also been diverse in degree. For instance, the Oxford Business Group (2009) opined that by and large, the banking sector in Saudi Arabia has demonstrated a high degree of resilience and was insulated from the problems which confronted commercial banks in other GCC countries. Moreover, the Saudi economy in general was found to better than other countries to avoid any negative impact (p. 61) on the following grounds. First, Saudis banks have focused on domestic demand, thereby keeping exposure to the US subprime assets at arms length. Second, Saudis mortgage industry is relatively underdeveloped, and therefore a minimal impact on its real estate sector was experienced in comparison to other GCC countries. Thirdly, the sector still maintains a large and underbanked deposit base to draw from (Oxford Business Group 2009). Among the GCC economies, the UAE has been the most affected by the crisis. Between 2008 and 2009, real GDP growth fell from 7.4 to 0.5 percent. This was due to a severe contraction in domestic demand, notably in Dubai. In the UAE, the real estate sector represents 16 percent of GDP, so the slowdown in this sector had a severe impact on growth. Around 80 percent of Dubais workforce is composed of expatriates, and due to the layoffs, consumption has been significantly reduced (United Nations 2010a, p. 73). GCC economies responded to the effects of the global crisis by adopting measures and policies to mitigate its adverse consequences. Most GCC countries reproduced the policy responses of Western governments such as fiscal stimulation and stricter financial guidelines and regulations. The responses varied relatively depending on the circumstances of their economy. As the first impact of the global crisis directly hit financial institutions and the stock markets, GCC countries first policy responses was directed at supporting the banking sector by providing liquidity and credit support. Oil exporters such as Saudi Arabia, Kuwait, and the UAE fortified their banking systems by providing deposit guarantees for commercial banks (Woertz 2008). The effects of the global financial crisis on the banking sector have been buffered by several policy measures undertaken by GCC governments and their central banks. Some of the key measures taken since early September 2008 are as follows: reducing the Repo rate four-fold from 5.5 to 2.5 percent, reducing capital reserve requirement for banks, and injecting 3bUSD to enhance liquidity (Saudi Arabia); reducing Repo benchmark to 1.5 percent, injecting 32b USD in the financial and banking sector to ensure liquidity (UAE); reducing discount rates by 50 percent and guaranteeing of deposits (Kuwait) (Iqbal 2008). 5 Research Questions   The central question which this study answers is: What is the impact of the global financial crisis on the GCC countries? The following sub-questions will also be addressed, to wit: 1. What effect did the global financial crisis have on the financial markets, export demand, and government revenue in GCC countries? 2. How did the global financial crisis affect social indicators such as poverty and unemployment in GCC Countries? 3. What policy responses were made by GCC countries to counter the effects of the financial crisis? Research Hypotheses 1. The global financial crisis had a negative impact on the financial markets, export demand, assets, tourism, and remittances in the GCC countries. The impact of the crisis however went at varying degrees across countries. 2. The crisis led to an increase in unemployment and to the decrease of budget allocation for social services. 6 Methodology Overview of approach   This study follows a mixed-methods approach combining qualitative and quantitative methods of data collection and data analysis in order to achieve its goals. Because this study wants to determine the impact of the global financial countries on the economies of the GCC countries, the use of statistics is indispensable. Hence, the use of statistical evidence and the analysis of statistical data will form the bulk of the quantitative aspect of this study. The use of quantitative methods will provide generalization and predictions which are important to this study. On the other hand, there is a need to give the study a more in-depth character in order to fully understand the impact of the global financial crisis in its own context (Strauss and Corbin 2003). It is assumed that statistical research may not be able to take into full account the effects of the financial crisis. In order to have the best of both paradigms, qualitative and quantitative approaches are combined in this research in order to provide insights that neither approaches alone can provide (Patton 2005). Data Collection   Qualitative and quantitative forms of data will be gathered for the purposes of this study. 1. Key informant interviews Key informant interviews are qualitative in-depth interviews with individuals who are knowledgeable about the topic of interest. The purpose of conducting key informant interviews is to gain access to information which people who have first-hand knowledge only possess. In the context of the research objectives already outlined, key informant interviews can provide information about how the global financial crisis has affected GCC countries from a limited number of economic analysis or experts who have been able to observe and track the consequences of the global financial crisis in their respective countries. In particular, five (5) key informant interviews will be conducted. Participants will be individuals who are highly qualified to provide information about the effects of the global economic crisis: professors, economic analysts, or business experts. Face-to-face interviews or Internet correspondence will be conducted. Interviews will be transcribed and interpreted accordingly. 2. Statistical reports and other documentary evidence As stated earlier, the use of statistical data is indispensable to this study. To track the effects of the global financial crisis on key areas of the six GCC economies, official reports and statistics from authoritative sources will be used such as the World Bank, International Labor Organization, the OECD, and International Monetary Fund. Moreover, secondary sources such as newspaper articles, in-house reports, and other pertinent documents will be used to verify or illuminate findings. Data Analysis   Data from the key informant interviews will be analyzed for recurring themes, patterns, and ideas. Statistical data from reports and documentary evidence will be analyzed using descriptive statistics. Interpretation   Because qualitative data tends to be subjective, findings from the key informant interviews will be cross-checked and verified with secondary sources. In order to reduce the probability of bias, results from the interviews will be substantiated with findings from statistical analysis performed on the reports and documentary evidence. 7 Expected Results   Out of the mixed-methods approach that this study will undertake in determining the impact of the global financial crisis, the following results are expected: 1. A detailed presentation of the key economic and social indicators in significant areas of six GCC countries highlighting improvement or decline; 2. An in-depth presentation of interview findings from well-known and expert informants that will substantiate or illuminate on the findings from statistical sources. 3. Key policy responses made by governments are identified and recommendations for improvement are also outlined.